Can Aetna Meet These Numbers?

Aetna (NYSE: AET  ) is expected to report Q4 earnings on Jan. 31. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Aetna's revenues will grow 4.3% and EPS will compress -1.0%.

The average estimate for revenue is $8.91 billion. On the bottom line, the average EPS estimate is $0.96.

Revenue details
Last quarter, Aetna reported revenue of $8.90 billion. GAAP reported sales were 5.2% higher than the prior-year quarter's $8.48 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $1.55. GAAP EPS of $1.47 for Q3 were 13% higher than the prior-year quarter's $1.30 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 28.6%, 280 basis points worse than the prior-year quarter. Operating margin was 10.0%, 120 basis points worse than the prior-year quarter. Net margin was 5.6%, 20 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $35.33 billion. The average EPS estimate is $5.14.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 597 members out of 644 rating the stock outperform, and 47 members rating it underperform. Among 225 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 214 give Aetna a green thumbs-up, and 11 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Aetna is outperform, with an average price target of $49.59.

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